A decision by Croatia’s regulator to remove restrictions on dominant player Hrvatski Telekom (HT) looks set to provoke a backlash from smaller competitors in the country’s fixed broadband sector.
Broadband TV News reports that HT – a subsidiary of Deutsche Telekom - is currently designated as a significant market player (SMP) in 72 local markets across Croatia, meaning that its wholesale and retail operations are subject to price controls.
HAKOM (Hrvatska regulatorna agencija za mrezne djelatnosti / Croatian Regulatory Agency for Network Operations) has informed the European Commission that it will revoke this designation for HT, meaning it will no longer be bound by these controls.
Given that HT is already the dominant player in Croatia’s fixed broadband market - with a 59% share based on subscriptions, according to TeleGeography - its smaller rivals are claiming that HAKOM’s move would reinforce HT’s position further by effectively deregulating the sector.
Adrian Jezina, CEO of smaller player Telemach Croatia, cautioned that the move could damage the market, saying: “HAKOM’s decision to deregulate now will entrench the position of the dominant market player for another generation, benefiting Deutsche Telekom at the expense of Croatian consumers. Our entry into the market as a third player has already stimulated competition and led to greater investment.”
“Now is the time to be encouraging competition to invest further in infrastructure to create a more competitive environment. Croatia needs an encouraging and stable regulatory framework, which will boost investments by all operators without favouritism. We hope that the European Commission carefully reviews HAKOM’s proposal to ensure that it is harmonised with the practices of the European Union, and in the best long-term interest of consumers in Croatia.”
